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Project reporton

New product Development

&Right Execution DailyAt

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LTD,NAJIBABAD BIJNOR U.P

Submitted for the partial fulfillment of the

awardOf

Master of Business AdministrationDEGREE

(Session 2009-2011)

Submitted by:

Sanjeev kumarROLL No. 0903270058

Under the Guidance ofMs. Ajay Singh

Department of ManagementABES ENGINEERING COLLEGE GHAZIABAD

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AFFILIATED TOUTTAR PADESH TECHNICAL UNIVERSITY, LUCKNOW

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A CKNOWLEDGMENT

This project bears the imprint of many people who were either directly or inderctly involved in the

successful completion of this project work.

I am grateful to Dr.RAKESH PASSI, Head of Department of ABES ENGINEERING

COLLEGE GHAZIABAD, under the supervision of Ms. AJAY SINGH for giving me the

opportunity to work on a project. I am thankful to Mr. Deep Kamal Khurana(A.S.M) for assigning

me this project and also help me to handle the project.I would also thankful to my Area Sales

Executive Mr. NAVNEETBAHUGUNA sales executive for help me this project. Last but not least,

I extend a special thanks to for support, devotion and co-operation.

DATE.

PLACE.. SANJEEV KUMAR

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DECLARATION

I, VIJAY KUMAR Class MBA 3rd semester of ABES ENGINEERING COLLEGE

GHAZIABAD (affiliated to Gautam Buddh Technical University, Lucknow ) hereby declare that

the Work which is being presented in this report entitled NEW PRODUCT DEVELOPMENT &

RED (RIGHT EXICUTIV DAILY) IS an authentic record of my/own work carried out under the

supervision ofMs. ASTHA DHAWAN.

The matter embodied in this report has not been submitted by me/us for the award of any other

degree.

Dated. SANJEEV KUMAR

(MBA)

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INDEX

CONTENT PAGE NO.

ACKNOWLEDGEMENT 2

DECLARATION 3

INTRODUCTION 5

A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA 6

A BRIEF INSIGHT- THE BEVERAGE INDUSTRY IN INDIA 7

MISSION 9

THE COCA-COLA COMPANY 10

INTRODUCTION 12

HISTORY 13

PRODUCTION 14

LOCAL COMPETITORS 24

ADVERTISING 25

ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA 29

COCA COLA CHANNEL MARKETING & PROFITS 31

CRITICISM OF COCA COLA COMPANY 32

PLANT PROFILE 37

PRODUCT OF A COMPANY 38

ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN HCCBPL. 39

QUALITY ASSURANCE. 56

TRANSPORTATION 58

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NEW PRODUCT DEVELOPMENT & RIGHT

EXECUTION DAILY 61

BASIS OF NEW PRODUCT DEVELOPMENT 61

NEW PRODUCT DEVELOPMENT PROCESS 61

NEW PRODUCT OPPORTUNITY 6

PRODUCT DEVELOPMENT SYSTEM 64

NEW PRODUCT DEVELOPMENT STAGES 65

NEW PRODUCT IN COCA-COLA 66

MARKET SEGMENTATION MODEL 78

FINDING ANALYSIS 87

SWOT ANALYSIS. 87

FIELD EXPERIENCE 88

RESEARCH METHODOLOGY 100

MY ROLE IN PROJECT RED 103

FINDINGS OF PROJECT 104

RECOMMENDATIONS 106

LIMITATIONS OF PROJECT 106

CONCLUSION 108

BIBLOGRAPHY 109

INTRODUCTION

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A BRIEF INSIGHT-

THE FMCG INDUSTRY IN INDIA: -

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are

products that have a quick turnover and relatively low cost. Consumers generally put less thought

into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players

had been facing severe problems on account of increased competition from small and regional

players and from slow growth across its various product categories. As a result, most of the

companies were forced to revamp their product, marketing, distribution and customer service

strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed

significantly. With the liberalization and growth of the Indian economy, the Indian customer

witnessed an increasing exposure to new domestic and foreign products through different media,

such as television and the Internet.Though the absolute profit made on FMCG products is relatively

small, they generally sell in large numbers and so the cumulative profit on such products can be

large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer

from mass layoffs every time the economy starts to dip. A person may put off buying a car but he

will not put off having his dinner.Unlike other economy sectors, FMCG share float in a steady

manner irrespective of global market dip, because they generally satisfy rather fundamental, as

opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth

largest sector in the Indian Economy and is worth Rs.93000 Crores. The main contributor, making up

32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector

will be worth Rs.143000 Crores. The sector being one of the biggest sectors of the Indian Economy

provides up to 4 million jobs.

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BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in which the

players constantly innovate, in order to come up with better products to gain more consumers and

satisfy the existing consumers.

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BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola


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BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right

product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages

Natural and Synthetic beverages

In-home consumption and out of home on premises consumption.

Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.

Segmentation based on the amount of consumption i.e. high levels of consumption and low

levels of consumption.

The credibility and trust needs to be built so that there is a very strong and safe feeling that

the consumers have while consuming the beverages.

Communication should be relevant and trendy so that consumers are able to find an appeal to

go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of

distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and

sales growth in turn to add up to the overall growth of the food and beverage industry in the

economy.

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THE CREATOR OF COCA COLA

John Pemberton invented Coke in 1886

MISSION

To Refresh the World... In body, mind, and spirit

To Inspire Moments of Optimism... Through our brands and our actions

To Create Value and Make a Difference... Everywhere we engage.

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CHAPTER 2: THE COCA COLA COMPANY

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia,

on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor

of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. In

addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company

began building its global network in the 1920s. Now operating in more than 200 countries and

producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a

global scale: Provide a moment of refreshment for a small amount of money- a billion times a day.

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and

pervasive production and distribution system in the world. The Company aims at increasing

shareowner value over time. The associates of this Company jointly take responsibility to ensure

compliance with the framework of policies and protect the Companys assets and resources whilst

limiting business risks. Coca-Cola is made up of 7000 local employees, 500 managers, over 60

manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned

Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture

process of a range of products for the company. It also has a supporting distribution network

consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to

cater to the Indian market are made locally, with help of technology and skills within the Company.

The complexity of the Indian

market is reflected in the distribution fleet, which includes different modes of distribution, from 10-

tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities

and trademarked tricycles and pushcarts.

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LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING ININDIA

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COBO

FOBO

CONTRACT PACKAGING


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COCA COLA

Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines in

more than 200 countries. It is produced by The Coca-Cola Company and is often referred to simply

as Coke. Originally intended as a patent medicine when it was invented in the late 19th century by

John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing

tactics led Coke to its dominance of the world soft drink market throughout the 20th century.

The company actually produces concentrate, which is then sold to various licensed Coca-Cola

bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the

company, produce finished product in cans and bottles from the concentrate in combination with

filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans

and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which

is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola

Company also sells concentrate for fountain sales to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke

brand name. The most common of these is Diet Coke, which has become a major diet cola. However,

others exist, including Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and

special editions with lemon and with lime and even with coffee.

In response to consumer insistence on a more natural product, the company is in the process

of phasing E211 or Sodium Benzoate, the controversial additive linked to DNA damage and

hyperactivity in children, out of Diet Coke. The company has stated that it plans to remove the

controversial additive from its other products - including Sprite, and Oasis - as soon as a satisfactory

alternative is discovered.

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History

Old German Coca-Cola bottle opener.

The first Coca-Cola recipe was invented in Columbus, Georgia at a drugstore by John Stith

Pemberton, originally as a cocawine called Pemberton's French Wine Coca in 1885. He may have

been inspired by the formidable success of European Angelo Mariani's cocawine, Vin Mariani.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton

responded by developing Coca-Cola, essentially a carbonated, non-alcoholic version of French Wine

Cola.

The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886 It was initially

sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United

States at the time due to the belief that carbonated water was good for the health Pemberton claimed

Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache,

and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in

theAtlanta Journal. For the first eight months only nine drinks were sold each day.[citation needed]

By 1888, three versions of Coca-Cola sold by three separate businesses were on the

market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as

the Coca Cola Company in 1888 The same year, while suffering from an ongoing addiction to

morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O.

Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley

Pemberton began selling his own version of the product.

In an attempt to clarify the situation, John Pemberton declared that the name Coca-Cola

belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the

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summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed

to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his

two competitors out of the business. Candler purchased exclusive rights to the formula from John

Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim

her signature on the bill of sale had been forged, and subsequent analysis has indicated John

Pemberton's signature was most likely a forgery as well.

In 1892, Candler incorporated a second company, The Coca-Cola Company (the current

corporation), and in 1910, Candler had the earliest records of the company burned, further obscuring

its legal origins. Regardless, Candler began marketing the product, although the efficacy of his

concerted advertising campaign would not be realized until much later. By the time of its 50th

anniversary, the drink had reached the status of a national icon for the USA. In 1935, it was certified

kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some

ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. Cans of Coke first

appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the

Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles

were Biedenharn bottles, very different from the much later hobble-skirt design that is now so

familiar.

Asa Candler was tentative about bottling the drink, but the two entrepreneurs who proposed

the idea were so persuasive that Candler signed a contract giving them control of the procedure.

However, the loosely termed contract proved to be problematic for the company for decades to come.

Legal matters were not helped by the decision of the bottlers to subcontract to other companiesin

effect, becoming parent bottlers

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities,

as an over-the-counter remedy for nausea or mildly upset stomach.

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New Coke

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the

drink with "New Coke." Follow-up taste tests revealed that most consumers preferred the taste of

New Coke to both Coke and Pepsi. Coca-Cola management was unprepared, however, for the

nostalgic sentiments the drink aroused in the American public. The new Coca-Cola formula caused a

public backlash. Protests caused the company to return to the old formula under the name Coca-Cola

Classic on July 10, 1985.

21st century

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they

planned a launch of a Diet Coke product sweetened with the artificial sweetener sucralose

("Splenda"), the same sweetener currently used in Pepsi One On March 21, 2005, it announced

another diet product, "Coca-Cola Zero", sweetened partly with a blend of aspartame and acesulfame

potassium Recently Coca-Cola has begun to sell a new "healthy soda" Diet Coke with Vitamins

B6, B12, Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus".

On July 05, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time

since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-

Cola Classic" was changed back to "Coca-Cola". The word "Classic" was truncated because "New

Coke" was no longer in production, eliminating the need to differentiate between the two. The

formula remained unchanged.

Use of stimulants in formula

When launched Coca Cola's two key ingredients were cocaine (benzoylmethyl ecgonine) and

caffeine. The cocaine was derived from the coca leave and the caffeine from kola nuts - Coca-Cola

(the 'K' in Kola was replaced with a C for marketing purposes).

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Coca - Cocaine

Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose, whereas,

in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only

a tenth of this amount. Coca Cola did once contain an estimated nine milligrams of cocaine per glass,

but in 1903 it was removed Coca Cola still contains coca flavoring.

After 1904, Coca Cola started using, instead of fresh leaves, "spent" leaves - the leftovers of

the cocaine-extraction process with cocaine trace levels left over at a molecular level. To this day,

Coca Cola uses as an ingredient a cocaine free coca leaf extract prepared at a Stepan Company plant

in Maywood, New Jersey.

In the United States, Stepan Company is the only manufacturing plant authorized by the

Federal Government to import and process the coca plant Stepan laboratory in Maywood, N.J., is the

nation's only legal commercial importer of coca leaves, which it obtains mainly from Peru and, to a

lesser extent, Bolivia. Besides producing the coca flavouring agent for Coca Cola, Stepal Company

extracts cocaine from the coca leaves, which it sells to Mallinckrodt Inc, a St. Louis pharmaceutical

manufacturer that is the only company in the United States licensed to purify cocaine for medicinal

use N.J. Stepan buys about 100 metric tons of dried Peruvian coca leaves each year, said Marco

Castillo, spokesman for Peru's state-owned National Coca Co.

Kola Nuts - Caffeine

Kola nuts act as a flavouring in Coca Cola, but is also the beverage's source of caffeine. In

Britain, for example, the ingredient label states "Flavourings (Including Caffeine)". Kola nuts

contains about 2 to 3.5 percent caffeine, is of bitter flavour and is commonly used in cola soft drinks.

In 1911 The US government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola,

hoping to force Coca Cola to remove caffeine from its formula. The case was decided in favour of

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Coca Cola. Subsequently, in 1912 the US Pure Food and Drug Act was amended, adding caffeine to

the list of "habit-forming" and "deleterious" substances which must be listed on a product's label.

Coca Cola contains 46 mg/12 fl oz of caffeine, while Diet Coke Caffeine-Free contains 0 mg.

Caffeine may be used by athletes as ergogenic aid - to increasing the capacity for mental or physical

labor. The ergogenic qualities of caffeine are contested, although there is strong evidence that it may

significantly enhance endurance performance. For this reason, caffeine is listed as a restricted

substance by the International Olympic Committee (IOC). Nevertheless Coca Cola was the leading

sponsor of the 1996 summer Olympic games

The exact formula of Coca-Cola is a famous trade secret. The original copy of the formula is held in

SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust Company, was the underwriter for

the Coca-Cola Company's initial public offering in 1919. A popular myth states that only two

executives have access to the formula, with each executive having only half the formula] The truth is

that while Coca-Cola does have a rule restricting access to only two executives, each knows the

entire formula and others, in addition to the prescribed duo, have known the formulation process.

Franchised production model

The actual production and distribution of Coca-Cola follows a franchising model. The Coca-

Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the

world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the

final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and then

carbonate it before filling it into cans and bottles, which the bottlers then sell and distribute to retail

stores, vending machines, restaurants and food service distributors

The Coca-Cola Company owns minority shares in some of its largest franchises, like Coca-

Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-

Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world.

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Since independent bottlers add sugar and sweeteners, the sweetness of the drink differs in various

parts of the world, to cater for local tastes.

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Brand portfolio

NameLaunched

Discontinued

Notes

Coca-Cola

1886

Coca-ColaCherry

1985

Coca-Cola withLemon

2001 2005

Still available in:American Samoa, Austria,

Australia, Belgium, Brazil,China, Denmark, Federationof Bosnia and Herzegovina,Finland, France, Germany,Hong Kong, Iceland, Korea,Luxembourg, Macau,Malaysia, Mongolia,Netherlands, Norway,

Philippines, Reunion,Singapore, South Africa,Spain, Sweden, Switzerland,Taiwan, Tunisia, UnitedStates, and West Bank-Gaza

Coca-

ColaVanilla

2002 2005

Still available in: Austria,Australia, China, Germany,Hong Kong, South Africa,

New Zealand (600ml and 350ml only) and Russia

2007It was reintroduced in June2007 by popular demand

Coca-Cola C2

2004 2007Was only available in Japan,Canada, and the UnitedStates.

Coca-Cola with

2005 Still available in Belgium,Singapore

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Lime

Coca-ColaRaspberry

June2005

End of 2005Was only available in NewZealand.

Coca-Cola M5

2005

Only available in Federation of

Bosnia and Herzegovina,Germany, Italy, Spain, Mexicoand Brazil

Coca-ColaBlackCherryVanilla

2006Middle of 2007

Was replaced by Vanilla Cokein June 2007

Coca-Cola Blk

2006Beginning of2008

Only available in the UnitedStates, France, Canada,Czech Republic, Federation ofBosnia and Herzegovina,Bulgaria and Lithuania

Coca-Cola Citra

2006Only available in Federation ofBosnia and Herzegovina, New

Zealand and Japan.Coca-Cola LightSango

2006Only available in France andBelgium.

Coca-Cola-Orange

2007Only available in UnitedKingdom

FantaApple 2009 Available in India

Bottle and logo design

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason

Robinson, in 1885 It was Robinson who came up with the name, and he also chose the logos

distinctive cursive script. The typeface used, known as Spencerian script, was developed in the mid

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19th century and was the dominant form of formal handwriting in the United States during that

period.

Earl R.Dean's original 1915 concept drawing of the contour Coca-Cola bottle

Dean reduced the middle diameter...and the famous Contour Coca-Cola Bottle was born.

The prototype never made it to production since its middle diameter was larger than its base.

This would make it unstable on conveyor belts.

The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but

known to some as the "hobble skirt" bottle, was created in 1915 by bottle designer, Earl R. Dean. In

1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new

bottle for the beverage that would distinguish it from other beverage bottles... "a bottle which a

person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person

could tell at a glance what it was" Chapman J. Root, president of the Root Glass Company, turned

the project over to members of his supervisory staff including company auditor T. Clyde Edwards,

plant superintendent Alexander Samuelsson and Earl R. Dean, bottle designer and supervisor of the

bottle molding room.

Root and his subordinates decided to base the bottles design on one of the sodas two

ingredients, the coca leaf or the cola nut, but were unaware of what either ingredient looked like.

Dean and Edwards went to the Emeline Fairbanks Memorial Libraryand were unable to find any

information about coca or cola. Instead they were inspired by a picture of the gourd-shaped cocoa

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pod in the Encyclopdia Britannica which Chapman Root approved as the model for theprototype.

[39]

Faced with the upcoming scheduled maintenance of the mold-making machinery, over the

next 24 hours Dean sketched out and created the mold for the bottle. Dean then molded a small

number of bottles before the glass-molding machinery was turned off.

Chapman Root approved the prototype bottle and a design patent was issued on the bottle in

November, 1915. The bottle was chosen over other entries at the bottlers convention in 1916 and

was on the market the same year. By 1920, Deans contoured bottle became the standard for the

Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most recognized packages

on the planet..."even in the dark!"

As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job

at the Root Glass Company. He chose the lifetime job and kept it until the Owens-Illinois Glass

Company bought out the Root Glass Company in the mid 1930s. Dean went on to work in other

Midwestern glass factories.

Although endorsed by some, this version of events is not considered authoritative by many

who cite its implausibility as difficult to believe. One alternative depiction has Raymond Loewy as

the inventor of the unique design, but although Loewy did serve as a designer of Coke cans and

bottles in later years, he was in the French Army in the year the bottle was invented and did not

migrate to the United States until 1919. Others have attributed inspiration for the design not to the

cacao pod, but to a Victorian hooped dress.

In 1997, Coca-Cola also introduced a "contour can", similar in shape to their famous bottle,

on a few test markets, including Terre Haute, Indiana. This new can was however never widely

released.

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A new slim and tall can has begun to appear in Australia as of December 20, 2006, which

costs an average of $2AUD. The cans have a distinct resemblance to energy drinks that are popular

with the teenage demographic. It is unknown if this design is of limited edition or may soon replace

the current 355 ml cans that have been used in the past (the new slim cans are 300 ml, making the

volume to cost ratio even smaller).

In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labelling, removing the

"Classic" designation, leaving only "Coca-Cola". Coca-Cola stated this is merely a name change and

the product remains the same. The cans still bear the "Classic" logo in the United States.

Coca-Cola in the new aluminum bottle.

Coca-Cola is a registered trademark in most countries around the world and should always be

written with the hyphen and notas "Coca Cola". The US trademark was registered in the United

States Patent Office on 31 January 1893. In the UK Coca-Cola was registered with the UK Patent

Office on 11 July 1922, under registration number 427817.

In 2007, Coca-Cola introduced an aluminum can that is designed to look like the original

glass bottles that Coca-Cola was first distributed in .

In 2007, the Coca-Cola logo on cans and bottles has changed, retaining the red color and

familiar typeface but taking branding back in time by removing much of the clutter on the can,

leaving only the logo and a plain white swirl-- the "dynamic ribbon".

In 2008, the Coca-Cola plastic bottles for all Coke varieties was changed with a new plastic

screw cap and contoured bottle shape designed to evoke the old glass bottles.

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Local competitors

Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities.

Around the world, some local brands do compete with Coke. In South and Central America, Kola

Real, known as Big Cola in Mexico, is a fast growing competitor to Coca-Cola On the French island

of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-

Cola. In the French region of Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-

Cola. However, The Coca-Cola Company purchased the brand in 1999. In Sweden, Julmust outsells

Coca-Cola during the Christmas season. In Scotland, the locally-produced Irn-Bru was more popular

than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its salesIn India, Coca-

Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-

Cola Company purchased Thums Up in 1993 As of 2004, Coca-Cola held a 60.9% market-share in

India Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a

United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is a competitor to Coca-

Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of

Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of

China, Future cola can be bought. In Slovenia, the locally-produced Cockta is a major competitor to

Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest

supermarket chain, Mercator. In Madagascar, Classiko Cola, made by Tiko Group, the largest

manufacturing company in the country, is a serious competitor to Coca-Cola in many regions. On the

Portuguese island ofMadeira, Laranjada is the top selling soft drink. In the UK Coca-Cola stated that

Pepsi was not its main rival, but rather Robinsons drinks.

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Advertising

An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The ad

is entitled Drink Coca-Cola 5.

Coca-Cola's advertising has had a significant impact on American culture, and is frequently

credited with the "invention" of the modern image of Santa Claus as an old man in red-and-white

garments; however, while the company did in fact start promoting this image in the 1930s in its

winter advertising campaigns, it was already common before that. In fact, Coca-Cola was not even

the first soft drink company to utilize the modern image Santa Claus in its advertising White Rock

Beverages used Santa in advertisements for its ginger ale in 1923 after first using him to sell mineral

water in 1915 .

Before Santa Claus, however, Coca-Cola relied on images of smartly-dressed young women

to sell its beverages. Coca-Cola's first such advertisement appeared in 1895 and featured a young

Bostonian actress named Hilda Clark as its spokesperson.

In the 1970s, a song from a Coca-Cola commercial called "I'd Like to Teach the World to

Sing", produced by Billy Davis, became a popular hit single.

Coca-Cola has a policy of avoiding using children younger than the age of 12 in any of its

advertising. This decision was made as a result of a lawsuit from the beginning of the 20th century

that alleged that Coke's caffeine content was dangerous to children. However, in recent times, this

has not stopped the company from targeting young consumers. [citation needed]

Coke's advertising is rather pervasive, as one of Woodruff's stated goals was to ensure that

everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern

areas of the United States, such as Atlanta, where Coke was born.

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Some of the memorable Coca-Cola television commercials between 1960 through 1986, were

written and produced by former Atlanta radio veteran Don Naylor (WGST 1936-1950, WAGA 1951-

1959) during his career as a producer for the McCann Erickson advertising agency. Many of these

early television commercials for Coca-Cola featured movie stars, sports heroes, and popular singers

of the day.

During the 1980s, Pepsi-Cola ran a series of television advertisements showing people

participating in taste tests essentially demonstrating that: "Fifty percent of the participants who said

they preferred Coke actually chose the Pepsi". Statisticians were quick to point out the problematic

nature of a 50/50 result; that most likely all this really showed was that in blind tests, most people

simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads

in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi

challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained

its leadership in the market.

Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed

three commercials for the company. In 1994 to commemorate her 5 years with the company, Coca-

Cola issued special Selena coke bottles

In an attempt to broaden its portfolio, Coca-Cola purchased Columbia Pictures in 1982.

Columbia provided subtle publicity through Coke product placements in many of its films while

under Coke's ownership. However, after a few early successes, Columbia began to under-perform,

and was dropped by the company in 1989.

Coca-Cola has gone through a number of different advertising slogans in its long history,

including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it" (see Coca-

Cola slogans).

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In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where

consumers earn virtual "points" by entering codes from special marked packages of Coca-Cola

products into a website. These points can in turn be redeemed for various prizes or sweepstakes

entries

Sponsorship of sporting events

Coca-Cola was the first-ever sponsor of the Olympic games, at the 1928 games in Amsterdam

and has been an Olympics sponsor ever since.] This corporate sponsorship included the 1996

Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Since

1978 Coca-Cola has sponsored eachFIFA World Cup and other competitions organised by FIFA. In

fact, one of the FIFA tournament trophy: FIFA World Youth Championship from Tunisia in 1977 to

Malaysia in 1997 was called "FIFA - Coca Cola Cup". [54] In addition, Coca-Cola sponsors the annual

Coca-Cola 600 and Coke Zero 400for theNASCARSprint Cup Series atLowe's Motor Speedway

in Charlotte, North Carolina and Daytona International Speedway in Daytona, Florida. Coca-Cola

has a long history of sports marketing relationships, which over the years have included Major

League Baseball, the National Football League, National Basketball Association and the National

Hockey League, as well as with many teams within those leagues. Coca-Cola is the official soft drink

of many collegiate footballteams throughout the nation.

In India Coca Cola was the one of the official Sponsors of the 1996 Cricket World Cup.

In England, Coca-Cola is the main sponsor of The Football League, a name given to the three

professional divisions below the Premier League in football (soccer). It is also responsible for the

renaming of these divisions- until the advent of Coca-Cola sponsorship, they were referred to as

Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship

(equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This

renaming has caused unrest amongst some fans who see it as farcical that the third tier of English

Football is now called "League One." In 2005 Coca-cola launched a competition for the 72 clubs of

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the football league - it was called "Win a Player". This allowed fans to place 1 vote per day for their

beloved club, with 1 entry being chose at random earning 250,000 for the club. This was repeated in

2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions,

Leeds United AFC had the most votes by more than double, yet they did not win any money to spend

on a new player for the club. In 2007 the competition changed to "Buy a Player". This competition

allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper on

the Coca-Cola website {www.coca-colafootball.co.uk}. This code could then earn anything from 50p

to 100,000 for a club of their choice. This competition was favoured over the old "Win A Player"

competition as it allowed all clubs to win some money, instead of all the money going to one

winning club.

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ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

30

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President(Central)


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31

Region VicePresident

AGM/AODUnit 1

AGM/AODUnit 2

AGM/AODUnit 3

AGM/AODUnit4

Region Finance

Region Human Resource

Region Customer Service

Region External Affairs

Region Cold Drink

Region Legal

Region BSG

Region Director/ManagerMarket Execution

Region CapabilityManagement

Region Channel


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Coca Cola Channel Marketing and Profits

Coca Cola has managed their company marketing and sales strategy within channels. Have

you ever considered the significance of the Coke vending machine to the success.

and profitability of the Coca Cola company? This channel is direct to consumer and vending

machines often have little to no competition and no trade or price promotions. Develop solutions for

groups of customers and deploy your benefit throughout the channel as compared to forcing a broad

solution onto multiple customer types.

For many food companies, the answer to this single question can point to sizeable new profits and

opportunities for growth via adding new sales channels and opening new markets with profits and

speed.

The Coke Company operates three primary delivery systems for its business channels:

Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and

Club stores;

For smaller channels Coke does advanced sale delivery for convenience

stores, drug stores, small supermarkets and on-premise fountain accounts.

Full service delivery for its full service vending customers.

Key Channel Listing

Supermarkets

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Convenience Stores

Fast Food

Petroleum Retailers

Chain Drug Stores

Hotels/Motels/Resorts

Mass Merchandisers U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA

Vending

If you noticed the growth of tractor trailer deliveries by Coke into C-Stores and other channels in the

past year or so, you noticed their new delivery scheme. In 2006, the Company began changing its

delivery method for its route delivery system. Historically, the Company loaded its trucks at a

warehouse with products the route delivery employee would deliver. The delivery employee was

responsible for pulling the required products off a side load truck at each customer location to fill the

customer's order. Coke began using a new CooLift delivery system in 2006 in a portion of the

Company's territory which involves pre-building orders in the warehouse on a small pallet the

delivery employee can roll off a truck directly into the customer's location. The CooLift delivery

system involves the use of a rear loading truck rather than a conventional side loading truck. Coke

anticipates the implementation of this delivery system will continue over the next several years. This

rollout required additional capital spending for the rear loading delivery vehicle. The Company

anticipates that this change in delivery methodology will result in significant savings in future years

and more efficient delivery of a greater number of products.

CriticismsIt has been suggested that some of the information in this article's Criticism orControversy

section(s) be merged into other sections to achieve a more neutral presentation.

The Coca-Cola Company has been criticized for its business practices as well as the alleged

adverse health effects of its flagship product. A common criticism of Coke based on its allegedly

toxic acidity levels has been found to be baseless by researchers; lawsuits based on these criticisms

have been dismissed by several American courts for this reason.

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Since there are indications that "soda and sweetened drinks are the main source of calories in

[the] American diet,"] most nutritionists advise that Coca-Cola and other soft drinks can be harmful if

consumed excessively, particularly to young children whose soft drink consumption competes with,

rather than complements, a balanced diet. Studies have shown that regular soft drink users have a

lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A The drink has also

aroused criticism for its use ofcaffeine, due to the possibility ofphysical dependence A link has been

shown between long-term regular cola intake, of which Coca-Cola is the most consumed brand

worldwide, and osteoporosis in older women (but not men)This was thought to be due to the

presence ofphosphoric acid, and the risk was found to be same for caffeinated and noncaffeinated

colas, as well as the same for diet and sugared colas.

Although numerous court cases have been filed against The Coca-Cola Company since the

1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has

been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no

immediate harm.

There is also some concern regarding the usage ofhigh fructose corn syrup in the production

of Coca-Cola. Since 1985 in the U.S., Coke has been made with high fructose corn syrup, instead of

sugar glucose or fructose, to reduce costs. This has come under criticism because of concerns that the

corn used to produce corn syrup may come from genetically altered plants. Some nutritionists also

caution against consumption of high fructose corn syrup because of possible links to obesity and

type-2 diabetes.

In India, there exists a major controversy concerningpesticides and other harmful chemicals

in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a

non-governmental organization in New Delhi, said aerated waters produced by soft drinks

manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins

including lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer and a

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breakdown of the immune system. Tested products included Coke, Pepsi, and several other soft

drinks, many produced by The

Coca-Cola Company. CSE found that the Indian produced Pepsi's soft drink products had 36 times

the level of pesticide residues permitted under European Union regulations; Coca-Cola's soft drink

was found to have 30 times the permitted amount. CSE said it had tested the same products sold in

the US and found no such residues. After the pesticide allegations were made in 2003, Coca-Cola

sales declined by 15%. In 2004, an Indian parliamentary committee backed up CSE's findings, and a

government-appointed committee was tasked with developing the world's first pesticide standards for

soft drinks. The Coca-Cola Company has responded that its plants filter water to remove potential

contaminants and that its products are tested for pesticides and must meet minimum health standards

before they are distributed.[63] In the Indian state ofKerala, sale and production of Coca-Cola, along

with other soft drinks, was initially banned, before the High Court in Kerala overturned the ban

ruling that only the federal government can ban food products. Coca-Cola has also been accused of

excessive water usage in India.

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CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PVT. LTD.

NAJIBABAD

Najibabad plant (the company) is spread over an area of about 50 thousand square meter. The

plant was established in 1983 as Mansarover Bottling Company Ltd.This plant was a franchise

outlet forParle Exports Bombay.

As per the BIFR ruling ,coca-cala took over this plant on 14th feb and absorbed all the 275 permanent employees .

The only major change in the operational set up was the appointment of a General manager and

a Finance Manager . This change led to a certain amount of distrust and uncertainty among the

employees.This feeling was further strengthened ,when certain employees who in the past were

high in the hierarchy were left with limited authority and responsibility .A chage in the

management of decision makng.

The Najibabad bottling plants product line consists of the following:

Coke

Thums UP

Sprit

Fanta

Maaza

Kinley Soda

Limca

The plant procures the concentrate required for producing the soft drinks from Pune .The cans and

the pet bottles for all the soft drink and procured from Pune and Ghaziabad. The plant produces both

300 ml and 200ml of Coke. Coca-cola India has also introduced Maaza tetra packs that are produced

in Bhopal and then distributed in the region.

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Capacity of the plant

The product is seasonal in nature thus the production depends upon the seasons . The peak season

when the production is the maximum is between April and July.

The per day peak production capacity is as follows:

Aerated Drinks : 23,000 Crates

Maaza : 10,000 Crates

The per day production during non-peak season is as per demand.

The plant has three bottling lines. Two bottling lines produced aerated drinks and the line produces a

non- aerated drink i.e., Maaza.-Aerated Drink:

Lin 1 : 340 Bottles per minute.

Line 2 : 200 Bottles per minute.

-Non- Aerated Drink:

Line 3 : 240 Bottles per minute

The number of hours the machines woks depends upon the season and the demand .During the peak

season the machines run approximately for 16 hrs-24 hrs.

But during the non peak season the plant is closed down for maintenance from the month of

November till January .Other than this ,the plant is operated according to market demand.

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ORGANIZATION STRUCTURE OF THE SALES

DEPARTMENT IN HCCBPL

38

AGM/AOD

PlantManager

Route toMarket

HumanResourceManager

FinanceManager

GeneralSales

Manager

AreaSales

Manager

ChannelManager

AreaCapabilit

yManager

SalesExecutive

SalesTrainers

MarketDevelope

r

Distributors

AndSalesmen

Marketing

KeyAccounts


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330 ml can.

600 ml pet bottle.

1.25lt pet bottle.

2lt bottle.

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DIET COKE

Looking good and tasting great

Diet coke was born in 1982 and quickly became the No.1 sugar free drink in diet conscious America,

known as Diet coke in the U.S. ,Canada, Australia and great Britain and coca-cola light in other

countries ,it now the No.3 soft drink in the world.It,s the drink for people who want no calories ,but

plenty of taste. Ad campaigns around the world for diet coke share a playful, sophisticated and sexy

attitude.

Visit our Audio/Video center to witness how the Diet coke north American ad campaign celebrates

the real and human attributes that make people alluring in the eyes of others.

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Coca- Cola

Cola-cola is the most popular and biggest selling soft drink in history, as well as the best known

product in the world. Created by Dr.John.S.Pemberton, Coca-cola was first offered as fountain

beverages by mixing Coca-cola syrup with Carbonated water. Coca-cola was registered as a

trademark in 1895.Coca-cola was being sold in every state and territory in the united state. In 1899,

the co. began Franchised bottling operations in the United States.

Today, you can find coca-cola in virtually every part of the world and the coca-cola company has

more than 230 beverages to its portfolio.

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Volumes of the Coca- Cola

It has brown color with very high content of CO2 which makes the Cola flavor is very strong .It

is available in different volumes in the market likes-

200 ml glass bottle.


350 ml express pack.

330 ml can.

600 ml pet bottle.

1.25lt pet bottle.

2.25lt pet bottle.

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In the Lemon Section

SPRITE

Clear ,crisp, refreshing.

Introduced in 1960,Sprite is the world,s leading lemon lime flavored soft drink .sprite is sold

in more than 190 countries and ranks as the No.4 soft drink worldwide with a strong appeal to young

people.Millions of people enjoy Sprite because of its crisp ,clean taste that really quenches your thirst

.But also has an honest ,straightforward attitude about things that sets it apart from others soft drinks.

Sprite encourages you to be true to who are and to obey your thirst.

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Volumes of the Sprite

It is color less with packing in green coloured bottle. It has content of CO2 .It is available in

different volumes in the market likes-



350 ml expresspack.

330 ml can.

600 ml pet bottle.

1.25lt pet bottle.

2.lt petbottle.

LIMCA

Light and Lemony

This thirst quenching beverages features a fresh, light lemon lime taste and fun loving

attitude. Its a homegrown, national treasure in India, where the Coca-cola co. acquired it in 1993 the

products invigoration taste and cloudy look havent changed, but the brand has been revitalized with

a new marketing campaign. Limca continues to build a loyal following among young adults who love

the lighthearted way it compliments the best moments of their lives. Its also become a hit in many

Persian Gulf countries. Grab a limca and go.

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Volumes of the LIMCA

It is light grey color. It has content of CO2 that makes its flavour tasty.It is available in different

volumes in the market likes-



350 ml expresspack.

330 ml can.

600 ml pet bottle.

1.25Lt pet bottle.

2Lt petbottle.

Minute made Nimbu Fresh

The new Minute Maid Nimbu Fresh is a truly refreshing lemon juice-based drink with no added

preservative or added color. The latest offering is a lemon juice-based drink from the Coca-Cola

Company's (TCCC) stable developed especially for consumers in India. Minute Maid Nimbu Fresh is

made out of great quality fresh lemon juice concentrate, providing consumers with a great refreshing

experience - just like natural, home-made nimbu pani'.

Volumes of the Minute Made Nimbu Fresh

It is actually a Minute made nimbu fresh , which is very easy to prepare by mixing water in it and its

packing in the market are :

400 ml pet bottle

1200 ml pet bottle.

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In the Orange section:

FANTA

The coca-cola company acquired a favorite in Europe since the 1940 Fanta in 1960. Fanta orange is

the core flavor , representing about 70% of sales, but other citrus and fruit flavors have their own

solid fan base.

Consumers around the world, particularly teens ,fondly associate FANTA with happiness and special

times with friends and family. This positive imagery is driven by the brands fun playful personality

,which goes hand in hand with the bright color,bold fruit taste, and tingly carbonation.Fanta sells best

in Brazil,Germany,Spain ,Japan, Italy and Argentina. Fanta distribution was increased in the U.S. in

2001 with the return of four flavor: Orange , Strawberry,Pineapple, and Grape.

Orange ,the biggest seller ,is now available in most of the country.

Volumes of the Fanta

It comes many flavors like orange. It has content of CO2 that makes its flavor tasty. It is

available in different volumes in the market likes



350 ml express pack.

330 ml can.

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600 ml pet bottle.

1.25Lt pet bottle.

2 Lt pet bottle

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In the Juice section:

MAAZA

Yaari Dosti Taaza Maaza

It is a real fruit taste Kids love ,plus added calcium Maaza tagline Yaari Dosti Taaza

Maaza means Friendship moments with fresh Maaza in hindi . MAaza was introduced in India in

1984 as a no carbonated mango fruit drink .It was acquired by the Coca-cola Co. in 1993 and is

currently available in three flavors, mango, pineapple And orange plus added calcium.

Volumes of the Maaza

It is of yellow color with decent taste of mango .It doesnt contain CO2 .It is available in different

volumes in the market likes

200 ml Tetra pack.

250 glass Bottle.

250 express pack

600 ml pet bottle.

1.2Lt pet bottle.

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MINUTE MAID

PULPY ORANGE

Mnute made pulpy orange , which is haired by the coca-cola company and now its manufacturing in

under coca-cola company with the better taste of Oranges.

Volumes of the Minute made pulpy orange

It is actually a Minute made pulpy orange , which is very easy to prepare by mixing water in it

and its packing in the market are :

400 ml pet bottle

1200 ml pet bottle.

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In the Soda Water and Bottled Mineral Water section:

KINLEY CLUB SODA

This is thirst Quenching beverage features fresh the fresh water with the saturated oxygen level.

This is thirst quenching beverages features a fresh and light oranges taste and a lighthearted

attitude.

Volumes of the Clube Soda

It is color less and available in market :


500 ml pet bottle.

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KINLEY MINERAL WATER

This is thirst Quenching beverage features fresh the fresh water with the saturated oxygen level.

Volumes of the Kinley mineral water

K- Water is a mineral water available in following volumes in the market:

500 ml pet bottle

1 Lt ,pet bottle

2 Lt ,pet bottle

52

Kinley Mineral

Water


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PACKAGING DETAILS

53

1.2LTR

1 .25LTR

600ML

2LTR

250ML

350ML

200ML

300ML

330ML

PACK

SODA

LIMCA

SPRITE

FANTA

THUMSUPCOKE

MAAZA

YES

YES

YES

NO

YES

NO

YES

NO

NO

NO

YES

YES

YES

NO

YES

YES

YES

YES

YES

NO

YES

YES

YES

YES

YES

YES

YES

YES

NO

NO

NO

YES

NO

YES

NO

YES

NO

YES

YESYESYESYESYES

NOYESYESYESYES

NONONONONO

NO

NO

YES

YES

YES

YES

YES

YES

YES

YES


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PRICE DETAILS

Pack Retail Price Price for retailer

300 ML 12/- 264

200 ML 8/- 170

250 ML

350 ML

12/-

17/-

264

378

2 Ltr Pet 60/- 505

1.2 Lt

1.25 Lt

50/-

38/-

560

378

54

1.2 LTR

1 .25 LTR

600mL

2 LITRES

250ML

200ML

300ML

PACK NO.OF BOTTLES IN A CASE

12

12

24

9

24

24

24


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EXPLANATION OF MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following steps:

1. Water passes through the water treatment plant, further passing through the sand filter and the

activated carbon filter, so as to attain pure cleansed water.

2. In the syrup room, the concentrate is blended with the sugar syrup

3 .Once both the water and the final syrup are ready, they are both mixed together and sent to the

carbonator section where Carbon Dioxide is added to the mixture to form the final product.

4. On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and

washed for the purpose of filling in the final product in it. This step does not take place in the PET

bottle line as the bottles once used are disposed.

5. The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET

bottles), labeled and cased in order to be sent into the warehouse for distribution.

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56

Manufacturing Plant

Baddi (HP)

Sales and Depot Ware

House

Distribution

OUT LETS


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CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

QUALITY ASSURANCE (QA)

QA department ensure the total quality in each and every aspect of the organization .This quality is

not only concerned with individual department like production of goods but it is concerned with every

functioning of the organization such as hygiene in the organization like providing the nutrias food from

the canteen , cleanliness in the bathrooms ,not polluting the environment etc.

One of the major function of QA department is pre and post manufacturing tests which ensures

zero defect so that consumers can get right quantity and quality of products .All the procured materials

have to undergo a rigorous quality check. Even before procurement the quality of the material has been

ensured by the sample check of material.

Objectives :

Total cost-: The first and foremost objectives is to bring down overall cost. The costs

involved in Logistics Operations-

a) Transportation of supplies to the plant and distribution of finished goods through

distribution system.

b) Processing customers orders.

c) Packaging.

d) Providing customers services.

e) Maintaining warehouse .

These functions are directly not responsible for sales . But they do support the sales activites . So

the total cost approach refers to evaluation of all logistics expanded for any given sales

revenue .By using the cost approach the manager would try to maintain total logistics cost as

compared to the historical performance of the firm and in comparison with other firms of the

same industry

Sub Optimization-: It is a term applied to a situation in which one department objective or

function is optimized without considering the affect of action on others departments . The

goal of logistics is to manage the system to provide designated levels of manufacturing

supply at the least possible cost.

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Cost Trade Off-: This occur when a change in destination system causes some costs to

increase and other cost to decrease.

Customers Service -: Elements of customers service are :

a) On time delivery.

b) Proper handling of merchandise.

c) Quantity assembled should be according invoice.

d) On time service which includes after sales service, etc.

e)

DISTRIBUTION NETWORK

HCCBPL has a wide and well-managed network of salesmen appointed for taking up the

responsibility of distribution of products to diverse parts of the cities. The distribution channels are

constructed in such a way that the demand of customers is fulfilled at the right place and the right

time when they need it.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail

Stock--- Retail Shelf--- Consumer

The customers of the Company are divided into different categories and different routes, and

every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A

detailed and well-organized distribution system contributes to the efficiency of the salesmen. It also

leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.

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TRANSPORTATION LOGISTICS

The distribution function has to perform two functions: it has to generates demand for the product

and secondly ,it has to make sure that demand thus created is matched by adequate and time

supply .While all the members of the channel will have to take part in dual function , the transporter

has primary responsibility .A logistics plan can be drawn by considering the following points:

What are the alternatives modes of transport , viz .,road, rail, air, etc. Available for

transporting the goods from the point of manufacture to the point of purchase ?

What is the mode which is optimal from the standpoint of total distribution cost?

Is there any need for warehousing arrangements .keeping in view the products and marketing

characteristics.

In fact the first two are important enough to be considered even at the time of selection

of markets . The non- availability of required transportation facility can out weigh all other marketing

advantages that a company may have . The perishable nature of products demands that must reach

the consumers within the shortest possible time.

Therefore, unless the potential markets are served ,delivery of such time items cannot

be undertaken.

To consider the second aspect , namely selection of the appropriate mode of transport ,it is

necessary first to identify the elements that taken together constitute the total distribution costs. In a

study carried out in the US it is found that the total distribution costs are allocated over the various

components in the following proportion:

Administration 11.0%

Transportation 29.4%

Receiving and Shipping 7.8%

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Packaging 11.9%

Warehouse 17.04%

Inventory carrying costs 17.04%

Order processing 5.5%

The proportion obviously will vary from product to product ,but all the cost components, with sole

exception of warehousing ,will have to be considered for determining the total distribution costs of each

and every product.It is ,therefore obvious that the selection of the mode cannot be taken only on the basis

of the freight element, which at best will be only an important segment of total distribution costs .But the

decision will depend on the total incidence of costs for alternative modes of transport.In general the

criteria that should be taken in mind deciding on the proper modes of transport are cost speed

frequency ,reliability , safety and appropriates with regards to the product.

FACTORS AFFECTING CHANNEL DECISION:

Unit value In general , direct sales preferred for items of high unit

Value and wholesaler are approached for items of low value.

Bulk and Weight _: If bulk transportation is possible , direct exporting is preferred.

Technical nature-: Technologically complex and specialized products are usually solddirect.

Perish ablity_: The more perishable the product the shorter should be the channel leasing isusually adopted for technological perishable products.

Standardizations-: Indirect channels are possible for standardized products.

Stage of market development-_New products are promoted by

Direct sales. In direct channels may be adapted for established products.

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LOGISTICS IN COCA-COLA

The company HCCBPL PVT LTD. Najibabad, does its business in full fledge betweenMarch and June in western U.P. Approx 60% of the business of the year is done in these 4months of period.

The company 80% of business depends on Returnable Glass Bottles company always try toreceive same amount of empty bottles as it has been dispatched to distributers because if theorganization will not do so then its production will hamper and that ultimately effect the sale.

Company always sends two-way vehicles instead of one-way vehicles .The concept of two-way is that vehicle will distribute the full bottles and return by taking empty bottles fromthem.

The one-way vehicles cost much higher than two-way vehicles are also returned to enablefurther production

This is beneficial for both company and distributor because company gives glass bottles andcrates on loan to distributors and their money is receiving the bottles in the plant.

The company pays freight according to distance and load . It has a policy of payingfreight according to load slabs & destination.

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NEW PRODUCT DEVELOPMENT IN COCA-COLA :

INTRODUCTION ABOUT NEW PRODUCT DEVELOPMENT -

Product development is the process of designing, creating, and marketing an idea or product. The

product can either be one that is new to the marketplace or one that is new to your particular

company, or, an existing product that has been improved. In many instances a product will be labeled

new and improved when substantial changes have been made.

The Product Development Process

All product development goes through a similar planning process. Although the process is a

continuous one, it is crucial that companies stand back after each step and evaluate whether the new

product is worth the investment to continue. That evaluation should be based on a specific set of

objective criteria, not someone's gut feeling. Even if the product is wonderful, if no one buys it the

company will not make a profit.

Brainstorming and developing a concept is the first step in product development. Once an idea is

generated, it is important to determine whether there is a market for the product, what the target

market is, and whether the idea will be profitable, as well as whether it is feasible from an

engineering and financial standpoint. Once the product is determined to be feasible, the idea or

concept is tested on a small sample of customers within the target market.

New Product Development Process:

Idea Generation and Screening

Concept Development and Testing Marketing Strategy Business Analysis

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Product Development Test Marketing Commercialization

Step 1. Idea Generation

Simply having an idea is worthless--you need to have proof of when you came up with the idea for

your invention. Write down everything you can think of that relates to your invention, from what it is

and how it works to how youll make and market it. This is the first step to patenting your idea and

keeping it from being stolen. Youve probably heard about the poor mans patent--writing your

idea down and mailing it to yourself in a sealed envelope so you have dated proof of your inventions

conception. This is unreliable and unlikely to hold up in court. Write your idea down in an inventors

journal and have it signed by a witness. This journal will become your bible throughout the patent

process. An inventor's journal can by any bound notebook whose pages are numbered consecutively

and can't be removed or reinserted. You can find specially designed inventor's journals at bookstores

(tryNolo Pressor the Book Factory to start), or you can save money and purchase a generic

notebook anywhere they're sold, such as the grocery store, office supply store, stationary store, etc

Systematic Search for New Product Ideas

Internal sources

Customers

Competitors

Distributors

Suppliers

Step 2. Idea Screening

Criteria

Process to spot good ideas and drop poor ones

Market Size Product Price Development Time & Costs Manufacturing Costs

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Rate of Return

3. Concept of development and testing : The new product idea passes the

intial screeing is subject to the concept testing. The product testing involve translating the basic ideainto a specific set of featuers and attribute that the product will offer to ponitial consumer.

The concept of testing it involves presenting the product concept to appropriate target cosumer andgetting their reactions.

4. Marketing of strategy Development : After testing the new product manager

Must develop a preliminary marketing strategy plan for introducimg the new product in the market.The plan consist of three part .

1. The describe the target market size , structur , product positioning , sales etc.

2. Outline the planned price distributer strategy, and market buget of first year.3. Describe the long run sales and profit goels and marketing mix strategy over time.

Step 5. Business Analysis-

After management develop the product concept and marketing strategy , it can evaluate theproposals business attractiveness management needs to prepare sales ,cost and profit projection todetermine whether they satisfy company .As new information comes in the business analysis willundergo revision and expansion.

In business analysis doing a estimating total sales and estimating cost and profits in business.

Business Analysis

- Review of Product Sales, Costs,

-and Profits Projections to See if

-They Meet Company Objectives

Step 6. Product Development-

The next stage of new product development is product development. The job of

translating target customer requirement into a working prototype is helped dy a set of method

known as Quality Deployment. The methodology takes the list of Desired cutomers attributes

generated by market research and them into a list of engineering attributes can be use a engineers.

The research and development department will develop one or more physical versions of the

product concept.

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Step 7: Market Testing:

After management is satisfied with functional and psychologoical performance, the product

ready to be dressed up with a brand name and packaging and put into a market test.The new product

is introduced into an authentic setting to learn how large the market is and how consumers and

dealers to handling using and repurchasing the product .

The amount of market testing is influenced by the investment cost and risk on the one hand ,and the

time pressutre and research cost on the other .High investment high risk products.

Step 8- Commercialization-

If the company goes a head with commercialization it will face its largest cost to date the company

will have to contract for manufacture or build or rent a full scale manufacturing facility

New Product Opporrtunity

Understanding the customers and the market.

Economic change brigs about economic development increase in the income in the long run but

economic cycles and price changes in the short run.

Sociological and development changes may appear in such factors as decreasing family size.The

trend affects the preference for products and services.

Technological changes make changes in the product features and innovation.

Political legal change brings about new trade agreement and government contract.

New product development system

An effective product strategy links product decisions with cash flow,market dynamics

,product life-cycle and organization capabilities .A company must have cash for product

development understand the changes taking place in the market and have the necessary talent and

resource for product development.

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Product development stages

Ideas for many sources

Does the firm have ability to carry out the idea

Customer requirement to win orders.

Fuctional Specification.

Product Specification

Design Review

Are these product Spections the best

Way to meet customer expectation?

Test market does the product meet customer

Expectation?

Introduction

Evaluations

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Issues for product design

Robust design-: Means that the product is designed so that small variation in production orassembly does not affect the product.

Modular design-: Product design in easily segmented components are known as modular design.Modular design offer flexibility to production and marketing as it makes change easier.

Computer aided design-: Is the use of computer to interactivelydesign product and prepare engineering documentation ,CAD software allows designers to save timeand money y shortening development cycles for all product.

Computer aided manufacturing-: Refers to the use of

Specialized computer programs to direct and control manufactering equipment.

NEW PRODUCT OF A COMPANY

Coca-Cola India refreshes millions of consumers throughout the country .The campany launch the

new product in 350 ML and 1.25 Lt I Fridge Pack in, Coca-Cola, Thums Up, Fanta, Limca, Sprite,

Maaza, and also introduced Minute Maid Pulpy Orange,and Minute Maid Nimbu Fresh in duration

of 2008-2010. The company has invested more than US$ 1 billion in its Indian operations, emerging

as one of the country's top international investors. In-addition the companys business operations also

engage approximately 1,50,000 people in India.

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Coke to launch 350 ml packs for people on-the-move

Place:New Delhi

Global beverages firm Coca Cola is planning to introduce 350 ml packs of most of its major brands,including Coca Cola, Diet Coke, Thumps Up and Mazaa, in a bid to attract on-the-move consumersahead of the expected sales drop in the winter.

The company has already introduced the new Xpress 350 ml pack for its Sprite brand and plans toexpand it to other products in a phased manner.

"Xpress 350 ml pack to be also made available in Coca-Cola, Diet Coke, Thumps Up, Maaza andKinley Club Soda in the first phase followed by Fanta, Limca and Minute Maid Pulpy Orange in thesecond phase,".

"The Sprite Xpress packaging innovation will be the perfect complement to the on-the-move lifestylesof today's youth and it will further strengthen the brands youth connect,"

Launch a product in the following place in india

The latest packaging would be available in select markets including Delhi and NCR, Bangalore,Mumbai, Pune, Goa, Jaipur, Ahmedabad, Jodhpur and Udaipur.

The company will also launch a special campaign titled 'Seedhi Baat, No Bakwaas' to promote itslatest format.

The integrated campaign would focus on out-of-home media through location-specific creatives inspots like shopping malls, parking areas and hang-out zones.

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Cocke in 350 ML

THUMPS UP

350 ML

Thums up is the

leading carbonated

soft drink and trusted brand It is known for its strong fizzy taste and it,s confident, mature and

uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.

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Price

Availability:

Model:MRP

Manufacturer:

Average

Rating:

Rs 17.10

In stock

18.00

COKE

Not rated.

Price

Availability:

Model:MRP

Manufacturer:

Average Rating:

Rs 17.10

In stock

18.00

Thumps Up

Not rated.


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SPRITE 350 ML

Sprite Xpress pack - a 350 ml on-the-go packaging innovation, priced at Rs 15

launched last year builds a stronger connect with the youth, who are always on

the lookout of opportunities to move up the ladder. They prefer Sprite simply

because of its unmatched thirst quenching ability and stating facts as they are

Seedhi Baat ,No Bakwaas, Clear Hai?!

Coke to launch 1.25 Ltr Fridge pack

Coca-Cola Indias innovative 1.25 liter Fridge Pack. The innovation, backed by extensive research

has been specially designed for Indian consumers. It is aptly called the Fridge Pack as it easily fits

into any average size refrigerator owned by most families. To further strengthen consumer connect

especially within the in-home segment, Coca-Cola India has extended its latest packaging innovation

across its entire sparkling beverage portfolio i.e. Coca-Cola, Thums Up, Sprite, Fanta, Limca.

First launched in select markets of Delhi, Mumbai, Nasik and states like Gujarat and Orissa, the

Fridge Pack has been a runaway success within 2 months of its launch in end March 08. Now as part

of the 5 million milestone celebration, Coca-Cola India today announced plans to NATIONALLY

roll out the 1.25 liter Fridge Pack across all markets.

According to Venkatesh Kini, Vice-President, Marketing, Coca-Cola India, Innovation has always

been the hallmark of Coca-Colas business strategy in India. With the trend of in-home consumption

of ready to drink packaged beverages on the rise, the success of the innovative 1.25 liter fridge pack

is exciting. It is heartening to see the packaging innovation cross the 5 million milestone within 2

months of its launch in select markets. The challenge now is to extend the benefits offered by the

fridge pack to maximum number of consumers. We are now in the process of rolling out this latest

innovation in a phased manner nationally, across our entire portfolio of sparkling beverage brands.

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Advantages:

The Fridge Pack, comes loaded with numerous advantages for consumers- be it the convenience to

store in an average size refrigerator, provide an ideal serving for one occasion consumption for 4-5

people. In-addition, the packaging innovation also provides for better fizz retention and at Rs 35

offers real value for money. The company has been launch the fridge pack in Coca Cola ,Thums

up , Sprite,Fanta , Limca.

Indias largest selling Soft Drink brand in the clear lime segment, orange segment,cola section. is all

set to unveil its latest communication -Fridge Mein Jayega Bade Kaam Ayega on

In.Com for the FIRST timeon August, 8, 2009.

New Delhi: Coca-Cola in India announced on Saturday the launch of the latest communication

initiative for Sprite Indias largest selling Soft Drink brand in the clear lime segment. The initiative

Fridge Mein Jayega Ba

Real Coca Cola

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